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Last Updated : Jul 18, 2019 09:05 AM IST | Source: Moneycontrol.com

What changed for the market while you were sleeping? Top 12 things to know

Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 21 points or 0.18 percent.

Sandip Das @Im_Sandip1

The market closed a rangebound session with moderate gains on July 17, backed by banking & financials, FMCG and technology stocks. However, the correction in auto and energy stocks limited gains on benchmark indices.

The BSE Sensex was up 84.60 points at 39,215.64 while the Nifty climbed 24.90 points to 11,687.50 and formed a small bullish candle which resembles Spinning Top kind of formation on daily charts.

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The Nifty Midcap index was down 0.3 percent and Smallcap index fell 0.2 percent as about 928 shares declined against 874 advancing shares on the NSE.

According to the pivot charts, the key support level is placed at 11,656.9, followed by 11,626.3. If the index starts moving upward, the key resistance levels to watch out are 11,712.4 and 11,737.3.

The Nifty Bank closed at 30,735.50, up 164.70 points on July 17. The important pivot level, which will act as crucial support for the index, is placed at 30,602.63, followed by 30,469.77. On the upside, key resistance levels are placed at 30,834.03, followed by 30,932.56.

Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines from across news agencies.

US Markets

US stock indexes fell on Wednesday as weak results from CSX Corp stoked concerns that the protracted trade war between the United States and China could hurt corporate earnings.

The Dow Jones Industrial Average fell 115.78 points, or 0.42%, to 27,219.85, the S&P 500 lost 19.62 points, or 0.65%, to 2,984.42 and the Nasdaq Composite dropped 37.59 points, or 0.46%, to 8,185.21.

Asian Markets

Asian shares wobbled in early Thursday trading as Wall Street stocks dropped on early signs that the U.S.-China trade war could hurt corporate earnings, helping to underpin solid demand for safe-haven US Treasuries.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down a touch, while Japan’s benchmark Nikkei fell 1.3% and Australian shares dropped 0.4%. South Korea’s market was off 0.4%.

SGX Nifty

Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 21 points or 0.18 percent. Nifty futures were trading around 11,652-level on the Singaporean Exchange.

Crude futures fall after strong build in US oil products stocks

Oil prices fell on Thursday, extending declines into a fourth day, after official data showed US stockpiles of products like gasoline rose sharply  last week, suggesting weak demand during the peak driving season.

Brent crude futures were down 15 cents, or 0.2%, at $63.51 a barrel by 0044 GMT. They fell 1.1% on Wednesday. US West Texas Intermediate crude futures fell 26 cents, or 0.5%, to $56.52. The US benchmark dropped 1.5% in the previous session.

Rupee falls 11 paise to 68.82 vs USD

The rupee depreciated by 11 paise to close at 68.82 against the US dollar July 17 due to foreign fund outflows and rising crude oil prices. Forex traders said cautious trading in the domestic equity markets also weighed on the local unit. However, weakening of the greenback vis-a-vis other currencies overseas supported the rupee to some extent.

At the interbank foreign exchange (forex) market, the domestic currency opened at 68.69 per dollar, but lost ground during the day and finally settled at 68.82, down 11 paise over its previous close.

Cabinet approves amendments to Insolvency and Bankruptcy Code Bill

The Cabinet on July 17 approved the Amendment to the Insolvency and Bankruptcy Code (IBC) Bill. The amendment places a greater emphasis on the need for time-bound disposal of cases at the application stage. This includes a deadline to complete the resolution process of an insolvent company within 330 days, which includes litigation.

The amendment has also allowed for the votes of financial creditors' to be as per the decision of the highest voting share of financial creditors. The amendment also allows for dissenting creditors to get a minimum liquidation value retrospectively. The Cabinet has also approved of the extension of the term of the 15th Finance Commission up to November 30.

Govt may cap overseas borrowing at $5 bn this year: Report

Singaporean bank DBS on July 17 said government is likely to limit its overseas bond sale at USD 5 billion this year, but suggested hiking the cap on foreign funds' investment in domestic debt is a better option considering the huge the risks involved in the former.

The potential pitfalls of such an issuance include exchange rate risks being borne by the government, small net savings on cost because of  hedging requirements, exposing the domestic financial system to external volatilities and cannibalising portfolio debt flows, it said.

"These are pertinent risks, which will require this option to be tread with care," its economists said in a report which focuses on the budgetary

proposals.

South Korea's central bank surprises with rate cut

South Korea’s central bank unexpectedly cut its policy interest rate for the first time in three years on Thursday, as a trade dispute with Japan among other pressures heightened risks for the already slowing economy.

The Bank of Korea announced its Monetary Policy Board voted to cut the base rate by 25 basis points to 1.50 percent, without elaborating, ahead of expectations in a Reuters poll that the board would lower the rate next month..

SEBI chairman writes to PMO, FinMin to reconsider Budget proposal on reserve fund transfer

The Securities and Exchange Board of India (SEBI) Chairman Ajay Tyagi has written to the Prime Minister's Office (PMO) and the finance ministry to re-consider the Budget 2019 proposal to transfer surplus funds of the regulator to the consolidated fund of India (CFI).

Tyagi's letter closely follows the July 9 appeal by the SEBI Employee Association (SEA) to the PMO seeking revocation of the proposal on the grounds that it will affect the regulator's autonomy and hamper the securities market functioning.

IMF sees dangers from trade tensions, overvalued dollar

The International Monetary Fund on July 17 said that the US dollar was overvalued by 6% to 12%, based on near-term economic fundamentals, while the euro, Japan's yen and China's yuan were seen as broadly in line with fundamentals.

The IMF has been at odds with US President Donald Trump over his use of tariffs to resolve trade imbalances, but its assessment that the dollar is overvalued is likely to give Trump more fodder for his frequent complaints that dollar strength is hampering US exports.

22 companies to report June quarter numbers today

On the results front, as many as 22 companies will declare their results for the quarter ended June which include names like ACC, Colgate Palmolive, Rallis India, L&T Infotech etc. among others.

Five stocks under F&O ban period on NSE

For July 18, DHFL, IDBI Bank, Reliance Capital, Reliance Infrastructure and Tata Elxsi are under the F&O ban period. Securities in ban period under the F&O segment include companies in which security has crossed 95 percent of the market-wide position limit.

With inputs from Reuters & other agencies

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First Published on Jul 18, 2019 07:47 am
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